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The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $75.06 million, indicating year-over-year growth of 41.83%.
The consensus mark for loss for the quarter is pegged at 10 cents per share, up by 2 cents over the past 30 days. The estimate indicates year-over-year growth of 37.5%.
Applied Digital Corporation Price, Consensus and EPS Surprise
In the last reported quarter, Applied Digital delivered a negative earnings surprise of 22.22%. The company's earnings missed the Zacks Consensus Estimate twice in the trailing four quarters, while matching the same twice, with the average negative surprise being 16.92%.
Earnings Whispers for APLD
Our proven model does not conclusively predict an earnings beat for APLD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Applied Digital is expected to have entered the third quarter of fiscal 2026, navigating the early stages of a revenue model shift, as tenant fit-out contributions from the prior period normalized and the company's lease-driven revenue stream began assuming greater significance. Polaris Forge 1's transition to operational status is expected to have supported incremental lease income, though with a substantial portion of contracted capacity still under construction, the revenue ramp is expected to have remained gradual and the financial impact limited relative to investment deployed.
During the quarter, Applied Digital is expected to have continued advancing its hyperscale pipeline. Simultaneous development across Polaris Forge 2 and additional campuses is expected to have sustained meaningful pressure on supply chains, labor coordination and project timelines through the period. Applied Digital's lead investment in Corintis, targeting liquid cooling for high-density GPU workloads, and early-stage power development work with Babcock & Wilcox are expected to have added incremental capital requirements while contributing little to near-term revenues. The pending ChronoScale spin-off, formalized with EKSO Bionics in December 2025, is expected to have introduced transaction costs and organizational complexity through the period.
Margin dynamics are expected to have remained under pressure, with elevated infrastructure costs and higher interest expense associated with the company's expanded debt load weighing on profitability. Competitive intensity is expected to have remained elevated, with Vertiv Holdings (VRT - Free Report) and nVent Electric (NVT - Free Report) continuing to deepen their data center infrastructure positioning, while Riot Platforms (RIOT - Free Report) remains active in energy-centric digital compute. Vertiv Holdings, nVent Electric and Riot Platforms collectively are expected to have reinforced execution and pricing pressures for APLD through the period, keeping the path to meaningful margin improvement narrow through the period.
APLD Price Performance & Stock Valuation
Applied Digital’s shares have plunged 21.2% in the past three months, while the broader Zacks Finance sector and the Zacks Financial-Miscellaneous Services industry have declined 7.6% and 21.7%, respectively. APLD’s performance has been weighed down by persistent net losses, rising debt obligations and limited near-term revenue visibility from its still-ramping lease portfolio.
APLD’s Price Performance
Image Source: Zacks Investment Research
Compared to the broader industry, APLD's valuation remains elevated despite the prospect of a challenging quarter. The stock currently trades at a forward 12-month Price-to-Sales ratio of 14.2X, versus the industry average of 2.59X. This wide premium appears difficult to justify given persistent net losses, rising debt obligations and a lease revenue ramp that remains in its early stages.
APLD’s Valuation
Image Source: Zacks Investment Research
Conclusion
Applied Digital's fiscal third-quarter results are expected to reflect a business still bridging the gap between capital deployed and revenue realized, with margin recovery appearing narrow in the near term as debt-driven costs, multi-campus construction complexity and early-stage strategic investments continue weighing on profitability. Competitive intensity from Vertiv Holdings, nVent Electric and Riot Platforms across infrastructure and power-linked compute ecosystems is expected to have kept conditions tight through the period. The stock's premium valuation suggests near-term growth optimism is already priced in amid a financial profile that remains under strain, making it prudent for investors to stay away from the stock right now.
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Applied Digital Set to Report Q3 Earnings: Hold or Fold the Stock?
Key Takeaways
Applied Digital (APLD - Free Report) is slated to report third-quarter fiscal 2026 results on April 8.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $75.06 million, indicating year-over-year growth of 41.83%.
The consensus mark for loss for the quarter is pegged at 10 cents per share, up by 2 cents over the past 30 days. The estimate indicates year-over-year growth of 37.5%.
Applied Digital Corporation Price, Consensus and EPS Surprise
Applied Digital Corporation price-consensus-eps-surprise-chart | Applied Digital Corporation Quote
Earnings Surprise History
In the last reported quarter, Applied Digital delivered a negative earnings surprise of 22.22%. The company's earnings missed the Zacks Consensus Estimate twice in the trailing four quarters, while matching the same twice, with the average negative surprise being 16.92%.
Earnings Whispers for APLD
Our proven model does not conclusively predict an earnings beat for APLD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
APLD has an Earnings ESP of -114.63% and a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape APLD’s Q3 Results
Applied Digital is expected to have entered the third quarter of fiscal 2026, navigating the early stages of a revenue model shift, as tenant fit-out contributions from the prior period normalized and the company's lease-driven revenue stream began assuming greater significance. Polaris Forge 1's transition to operational status is expected to have supported incremental lease income, though with a substantial portion of contracted capacity still under construction, the revenue ramp is expected to have remained gradual and the financial impact limited relative to investment deployed.
During the quarter, Applied Digital is expected to have continued advancing its hyperscale pipeline. Simultaneous development across Polaris Forge 2 and additional campuses is expected to have sustained meaningful pressure on supply chains, labor coordination and project timelines through the period. Applied Digital's lead investment in Corintis, targeting liquid cooling for high-density GPU workloads, and early-stage power development work with Babcock & Wilcox are expected to have added incremental capital requirements while contributing little to near-term revenues. The pending ChronoScale spin-off, formalized with EKSO Bionics in December 2025, is expected to have introduced transaction costs and organizational complexity through the period.
Margin dynamics are expected to have remained under pressure, with elevated infrastructure costs and higher interest expense associated with the company's expanded debt load weighing on profitability. Competitive intensity is expected to have remained elevated, with Vertiv Holdings (VRT - Free Report) and nVent Electric (NVT - Free Report) continuing to deepen their data center infrastructure positioning, while Riot Platforms (RIOT - Free Report) remains active in energy-centric digital compute. Vertiv Holdings, nVent Electric and Riot Platforms collectively are expected to have reinforced execution and pricing pressures for APLD through the period, keeping the path to meaningful margin improvement narrow through the period.
APLD Price Performance & Stock Valuation
Applied Digital’s shares have plunged 21.2% in the past three months, while the broader Zacks Finance sector and the Zacks Financial-Miscellaneous Services industry have declined 7.6% and 21.7%, respectively. APLD’s performance has been weighed down by persistent net losses, rising debt obligations and limited near-term revenue visibility from its still-ramping lease portfolio.
APLD’s Price Performance
Image Source: Zacks Investment Research
Compared to the broader industry, APLD's valuation remains elevated despite the prospect of a challenging quarter. The stock currently trades at a forward 12-month Price-to-Sales ratio of 14.2X, versus the industry average of 2.59X. This wide premium appears difficult to justify given persistent net losses, rising debt obligations and a lease revenue ramp that remains in its early stages.
APLD’s Valuation
Image Source: Zacks Investment Research
Conclusion
Applied Digital's fiscal third-quarter results are expected to reflect a business still bridging the gap between capital deployed and revenue realized, with margin recovery appearing narrow in the near term as debt-driven costs, multi-campus construction complexity and early-stage strategic investments continue weighing on profitability. Competitive intensity from Vertiv Holdings, nVent Electric and Riot Platforms across infrastructure and power-linked compute ecosystems is expected to have kept conditions tight through the period. The stock's premium valuation suggests near-term growth optimism is already priced in amid a financial profile that remains under strain, making it prudent for investors to stay away from the stock right now.